Calculators

Starting in January 2017, Canadian investors may have difficulty comparing their performance to a suitable benchmark. This is because provincial securities regulators will require advisors to report money-weighted rates of return, which are less useful for benchmarking. By using an approximate time-weighted rate of return (such as the Modified Dietz method), investors will be better able to gauge their performance relative to index benchmarks.

Once you’ve calculated your portfolios modified dietz rate of return, benchmark it to a suitable weighted-average index portfolio for each index making sure they add up to 100% and the calculator will do the rest.

For DIY investors who manage multiple accounts, rebalancing can be complicated and stressful. This calculator will help you stay on target. The spreadsheet allows for up to 10 accounts, as well as two holdings per asset class. It also incorporates the 5/25 rule popularized by Larry Swedroe, which says you should consider rebalancing when an asset class is off target by an absolute 5% or a relative 25%.

Calculators

Starting in January 2017, Canadian investors may have difficulty comparing their performance to a suitable benchmark. This is because provincial securities regulators will require advisors to report money-weighted rates of return, which are less useful for benchmarking. By using an approximate time-weighted rate of return (such as the Modified Dietz method), investors will be better able to gauge their performance relative to index benchmarks.

Even though most Canadian investors are now receiving performance figures by account, they’re still not being provided with their overall portfolio rate of return. This calculator will help you do just that.

Once you’ve calculated your portfolios modified diet rate of return, benchmark it to a suitable portfolio of ETFs to see how you’re doing. Simply type in your target percentage for each ETF making sure they add up to 100% and the calculator will do the rest.

For DIY investors who manage multiple accounts, rebalancing can be complicated and stressful. This calculator will help you stay on target. The spreadsheet allows for up to 10 accounts, as well as two holdings per asset class. It also incorporates the 5/25 rule popularized by Larry Swedroe, which says you should consider rebalancing when an asset class is off target by an absolute 5% or a relative 25%.

DIY Investors Toolkit

About Justin Bender

Justin Bender is the author of CPM Blog and a portfolio manager with PWL Capital Inc. in Toronto. Justin is a CFA Charterholder and a CFP Professional. He is currently working towards obtaining the Trust and Estate Practitioner (TEP) designation.